Article / 13 July 2016 at 23:01 GMT

US Market Wrap: GBPUSD succumbs to gravity

FX Trade Strategist /


  • Japan: Foreign Investment 1950 GMT 
  • Australia: Consumer Inflation Expectations 2100 GMT 
  • Australia: Employment Report 2130 GMT   
US data released 

  • MBA Mortgage Applications (Actual 7.2% vs. prior 14.2% 
  • EIA Crude Stocks Change (Actual minus 2.546m/b vs. forecast minus 2.950m/b) 

It’s official. Theresa May is now the 76th Prime Minister of the UK and only the second woman. In honour of that achievement and perhaps because of the resignation of Chancellor George Osborne (probably to avoid being demoted) GBPUSD sank. It was 1.3296 at the start of the day and finished at 1.3140. Pre-Bank of England meeting nerves may have contributed to the decline.

A more neutral-than-expected Bank of Canada interest rate statement and monetary policy report combined to send USDCAD plunging, falling from 1.3076 to 1.2934. 

USDJPY traded lower throughout the morning and then recouped most of its losses in afternoon markets while the antipodeans gave back some of yesterday's gains.

Oil prices sprung a leak. WTI sank to $44.54 from $46.54 despite the decline in crude stocks. That’s because the Energy Information Administration reported a larger increase in refined product supplies.

The Nasdaq shed 0.34%; the S&P 500 was virtually unchanged, and the Dow Jones Industrial Average squeaked out a very modest gain in an uneventful session. Perhaps traders were busy playing Pokemon Go or asking their kids how it works.

Going down ... nerves about the upcoming Bank of England meeting may
have contributed to GBPUSD's fall. Photo: iStock


Picking a time of day for a trade makes sense, according to TradingFloor contributor, fxtime: who wrote: Successful trade opened? Probably, but go shopping first

– Edited by Gayle Bryant

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
engage with Saxo Bank's social trading platform.

Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe. 


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